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Internet of Things in the 5G Era:


Enablers, Architecture and Business Models
Maria Rita Palattella, Member, IEEE, Mischa Dohler, Fellow Member, IEEE, Alfredo Grieco Senior
Member, IEEE, Gianluca Rizzo, Member, IEEE, Johan Torsner, Thomas Engel, Member, IEEE, and Latif Ladid
(Invited Paper)

Abstract—The IoT paradigm holds the promise to revolutionize such as Bluetooth Low Energy in Personal Area Networks
the way we live and work by means of a wealth of new [3], and Zigbee in Home Automation systems [4]. Others, such
services, based on seamless interactions between a large amount as WiFi, Low Power Wide Area Networks (LPWA) [5], and
of heterogeneous devices. After decades of conceptual inception
of the IoT, in recent years a large variety of communication cellular communications (such as 3GPP - 4G machine-type
technologies has gradually emerged, reflecting a large diversity communications, or MTC), have a much broader scope. In
of application domains and of communication requirements. Such addition, such landscape is constantly and rapidly evolving,
heterogeneity and fragmentation of the connectivity landscape is with new technologies being regularly proposed, and with
currently hampering the full realization of the IoT vision, by existing ones moving into new application domains.
posing several complex integration challenges. In this context,
the advent of 5G cellular systems, with the availability of a A rough distinction is emerging between consumer IoT
connectivity technology which is at once truly ubiquitous, reliable, (cIoT) and industrial IoT (iIoT) [6], with clear implications
scalable, and cost-efficient, is considered as a potentially key on underlying technologies and business models. Consumer
driver for the yet-to emerge global IoT. IoT aims at improving the quality of people’s life by saving
In the present paper, we analyze in detail the potential of 5G time and money. It involves the interconnection of consumer
technologies for the IoT, by considering both the technological
and standardization aspects. We review the present-day IoT electronic devices, as well as of (virtually) anything belonging
connectivity landscape, as well as the main 5G enablers for the to user environments such as homes, offices, and cities.
IoT. Last but not least, we illustrate the massive business shifts Conversely, industrial IoT focuses on the integration be-
that a tight link between IoT and 5G may cause in the operator tween Operational Technology (OT) and Information Technol-
and vendors ecosystem. ogy (IT) [7] and on how smart machines, networked sensors,
Index Terms—Internet of Things, IoT, 5G, cellular, Low-Power and data analytics can improve business-to-business services
Wifi, Zigbee, Bluetooth Low Energy, Low Power Wide Area, across a wide variety of market sectors and activities, from
3GPP, Machine-Type Communications, MTC, Standardization
manufacturing to public services. It generally implies machine-
to-machine interactions, either for application monitoring (e.g.,
I. I NTRODUCTION process monitoring in chemical production plants, vehicle fleet
The idea of an Internet of Things as a network of smart tracking, among others), or as part of a self organized system,
devices dates far back in the past [1], with the first applications with a distributed control which does not require human
for automated inventory systems coming as early as 1983. intervention (i.e., autonomic industrial plants) [8].
However, only from 1999 it took momentum, becoming part Despite their evident differences, these two service domains
of a shared vision for the future of Internet [2]. Today, the share some general communication requirements, such as
growing pervasiveness and ubiquity, in almost any context, of scalability, need for lean protocol stack implementations in
small and cheap computing devices, endowed with sensing constrained devices, and friendliness to the IP ecosystem.
and communication capabilities, is paving the way to the Nonetheless, the specific communication requirements of
realization of the IoT vision. iIoT and cIoT can be very different, in terms of reliability, QoS
A large variety of communication technologies has gradu- (latency, throughput, etc), and privacy. cIoT communications
ally emerged, reflecting a large diversity of application do- are typically machine-to-user, and usually in the form of client-
mains and of communication requirements. Some of these server interactions. In cIoT, desirable features of networked
technologies are prevalent in a specific application domain, things are low power consumption, ease of installation, inte-
gration and maintenance. Indeed, the quantified self paradigm
M.R. Palattella, T. Engel, and L. Ladid are with the University of [9] which is currently unfolding with the advent of fitness
Luxembourg, SnT, Luxembourg e-mail: {maria-rita.palattella, thomas.engel,
latif.ladid}@uni.lu. and health tracking systems, smart watches and sensor rich
M. Dohler is with King’s College London, UK email: smartphones requires a high power efficiency, in order to
mischa.dohler@kcl.ac.uk. enable long term monitoring by small, portable devices, as part
L.A. Grieco is with Politecnico di Bari, Italy email: al-
fredo.grieco@poliba.it. of a ”smart” environment or integrated in our daily wearings.
G. Rizzo is with the University of Applied Sciences Western Switzerland, At the same time, such applications need to minimize
HES-SO Valais-Wallis, Switzerland email: gianluca.rizzo@hevs.ch. the risk of exposing such sensitive data as someone’s health
J. Torsner is with Ericsson Research, Helsinki, Finland
email:johan.torsner@ericsson.com. status or life habits. Increasing the number of nodes and of
Manuscript received August, 2015; revised XXX, 2015. exchanged information clearly multiplies the potential vulner-
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abilities to the system to attacks and to privacy leaks [10]. be harmonized across multiple industries, and then properly
Differently from cIoT, iIoT evolves from a large base of combined together in order to meet the IoT technical Key
systems employing machine to machine communications for Performance Indicators (KPIs).
control process automation and/or monitoring. In such do- First forms of IoT connectivity can be dated back to the
mains, iIoT is the result of the integration, through the Internet, 80s, with the legacy Radio Frequency Identification (RFID)
of hardwired and often disconnected islands, usually based on technologies, and to the 90s, with the Wireless Sensor Net-
semi-proprietary protocols and architectures. Such integration works (WSNs). Due to their attractive application scenarios,
magnifies the potential of isolated industrial plants by aug- both in business and consumer market, they gained a lot of
menting their flexibility and manageability, and disclosing the momentum. Therefore, for the first decade of the 21st century,
opportunity to deploy new services [8]. industrial alliances and Standards Developing Organizations
Many of iIoT communications, together with some of cIoT (SDOs)s put a lot of effort in developing standardized low
communications, have often to satisfy stringent requirements power IoT solutions. The first ones, available on the market,
in terms of timeliness and reliability. Typically, the information were mainly proprietary solutions, such as WirelessHART,
exchanged is critical for ensuring a correct and safe behavior and Z-Wave. They actually delayed the initial take off of the
of the processes under control. Hence, the communication IoT, due to interoperability issues, among different vendors.
network must be engineered in order to: (i) meet stringent Then, more generic connectivity technologies have been de-
delay deadlines; (ii) be robust to packet losses; (iii) be safe veloped by SDOs, i.e., IEEE, ETSI, 3GPP, and IETF, easing
and resilient to damages, and more generally, strike the desired the interconnection and Internet-connection of constrained
balance between capital expenditure / operational expenditure devices. Bluetooth, and the IEEE802.15.4 standard [12] are
(CAPEX/OPEX) costs and system / service availability. 3G among the low power short range solutions available today,
and 4G cellular technologies, and especially 3GPP LTE [11], which have played an important role in the IoT evolution.
are among the most appealing technologies in the modern Recently the IEEE802.15.4 physical (PHY) and medium ac-
IoT connectivity landscape. They offer wide coverage, rela- cess control (MAC) layer have been complemented by an
tively low deployment costs, high level of security, access to IP-enabled IETF protocol stack. The IETF 6LoWPAN (today
dedicated spectrum, and simplicity of management. However, 6lo) [13] and IETF ROLL [14] WGs have played a key role
being designed for optimized broadband communications, they in facilitating the integration of low-power wireless networks
do not support efficiently MTC communications. into the Internet, by proposing mainly distributed solutions
The advent of 5G communications1 represents a potentially for address assignment and routing. At the same time, the
disruptive element in such a context. The increased data 3rd Generation Partnership Project (3GPP) has been working
rate, reduced end-to-end latency, and improved coverage with toward supporting M2M applications on 4G broadband mobile
respect to 4G hold the potential to cater for even the most networks, such as UMTS, and LTE, with the final aim of
demanding of IoT applications in terms of communication embedding M2M communications in the 5G systems.
requirements. Its support for large amounts of devices enables No one of these aforementioned technologies has emerged
the vision of a truly global Internet of Things. In addition, as a market leader, mainly because of technology shortcoming,
for its focus on the integration of heterogeneous access tech- and business model uncertainties. Now, the IoT connectiv-
nologies, 5G may play the role of a unified interconnection ity field is at a turning point with many promising radio
framework, facilitating a seamless connectivity of ”things” technologies emerging as true M2M connectivity contenders:
with the Internet. The goal of this paper is to analyze in detail Low-Power WiFi, Low-Power Wide Area (LPWA) networks
the potential of 5G for the Internet of Things, considering both and several improvements for cellular M2M systems. These
the technological aspects and their implications on business solutions are very attractive for IoT deployments, being able
models and strategies. to fulfill availability and reliability requirements. With the final
The paper is structured as follows. Sec. II reviews the aim of helping the understanding of this rich and variegated
main available IoT communication technologies, and their key context the reminder of this section overviews the modern IoT
performance indicators. As MTC play a special role in such connectivity landscape and characterizes in more details the
context, in Sec. III we review MTC requirements and we technologies which would potentially have a decisive impact
present the main standardization initiatives. Sec. IV describes in enabling a global IoT in the upcoming future [15].
the main technical enablers of IoT in 5G. Sec. V describes
two MTC architectures, SmartM2M, and OneM2M. Sec. VI
presents the main business implications of 5G in the IoT A. Zigbee
domain. Finally, Sec. VII concludes the paper. ZigBee is a low-cost, low-power, wireless mesh network
standard which has been widely applied in Wireless Sensors
II. M ODERN I OT C ONNECTIVITY L ANDSCAPE Networks (WSNs)s, the first pioneering Industrial IoT apppli-
Nowadays, the IoT landscape includes an extreme diver- cations (e.g., for control and monitoring). ZigBee was initially
sity of available connectivity solutions which need first to conceived in 1998, standardized in 2003, and finally revised in
2006. It builds on the IEEE802.15.4-2006 Physical (PHY) and
1 In this work, with the term 5G we refer to the solutions considered for and
Medium Access Control (MAC) standard specifications [12].
specified by 3GPP from Release 15 onwards, including both LTE evolution
beyond Release 14 and a new 5G air interface. Eventually 5G is expected to From real deployments, realized so far, it emerged that the
be defined by the technical solution(s) that fulfill the IMT 2020 requirements. current IEEE 802.15.4 PHY layer(s) suffice in terms of energy
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efficiency. In fact, it is the actual hardware implementation power usage, BLE uses (and thus, scans) only 3 advertising
which dictates the exact current draws and thus the energy channels, which are used for device discovery, connection set
needed to transmit a given information bit. However, many IoT up, and broadcast transmission. Their center frequencies have
applications are expected to exchange only a few bits. Thus, it been assigned to minimize interference with the IEEE802.11
will be advisable to look into a standardized PHY layer which channels 1, 6, and 11, widely used in several countries.
allows ultra low rate transmissions over very narrow frequency The other 37 data channels are dedicated to bidirectional
bands, with the consequent advantage of having enormous link exchange of short bursts of data between connected devices.
budgets and thus significantly enhanced ranges [16]. BLE also sets up connections very quickly, which further
From a MAC perspective, the IEEE802.15.4-2006 MAC minimizes the radios on time. An adaptive frequency hopping
layer(s) did not suffice the needs of IoT applications. Its single- algorithm is used on top of the data channels, to reduce
channel nature makes it unreliable, especially in multi-hop sensitivity to interference, and multi-path fading [3]. BLE
scenarios, where it incurs in an high level of interference has emerged in parallel with other low-power solutions, such
and fading. Moreover, it produces high energy consumption, as ZigBee, 6LoWPAN, and Z-Wave, which were targeting
requiring router/forwarding nodes to be always on, regardless applications with multi-hop scenario. However, BLE currently
of their actual traffic [16]. To overcome such limitations, the only supports a single-hop topology, namely piconet, with one
IEEE802.15 Task Group 4e (TG4e) was created in 2008 to re- master device communicating with several slaves node, and a
design the existing IEEE802.15.4-2006 MAC standard and ob- broadcast group topology, with an advertiser node broadcast-
tain a low-power multi-hop MAC better suitable for emerging ing to several scanners. In 2015, the Bluetooth SIG announced
embedded industrial applications. The IEEE802.15.4e standard the formation of the Bluetooth Smart Mesh working group
[17], published in 2012 as an amendment of the IEEE802.15.4- to define the architecture for standardized mesh networking
2011 MAC protocol, defined three new MACs. Among these, for BLE. This will enable extended communication range
the Timeslotted Channel Hopping (TSCH) mode is the most and simplify deployments of BLE networks for IoT. BLE is
promising one, facilitating energy efficient multi-hop commu- destined to be a key enabling technology for some short-
nications, while reducing fading and interference. The basic range Internet of Things applications, such as in healthcare,
concept on which TSCH builds on (i.e. the combination of smart energy, and smart home domains [4]. Its potential
time synchronization and channel hopping) was introduced for was recognized since its early birth, as shown by the interest
the first time by Dust Networks in 2006 in its proprietary Time it gained quickly at IETF, where the 6LoWPAN Working
Synchronized Mesh Protocol (TSMP) [18]. The core ideas of Group (today 6lo), developed a specification for allowing the
TSMP then made it into standards such as WirelessHART transmission of IPv6 packets over BLE [23]. BLE is expected
(2007) [19] and ISA100.11a (2009) [20]. These standards to become a de facto standard for short-range IoT services.
have targeted the industrial market, which requires ultra-high In fact, more than one billion smartphones are shipped every
reliability and ultra-low power. IEEE802.15.4e TSCH inherits year, all equipped with BLE interfaces. As a consequence,
directly from these industrial standards, which are already de- this technology will become very soon the most commonplace
ployed as commercial products in ten of thousands of networks communication medium for consumer applications: from one
in operation today. TSCH is thus a proven technology. One hand, a so broad market will let decrease the costs of BLE
important difference with existing industrial standards is that hardware; on the other hand, motes equipped with the BLE
IEEE802.15.4e TSCH focuses exclusively on the MAC layer. stack will have much chance to be used in all those scenarios
This clean layering allows for TSCH to fit under an IPv6- where user-to-machine interactions are needed (i.e., smart
enabled upper protocol stack. The IETF 6TiSCH Working living, health care, smart building, and so forth) [24].
Groups (WGs) [21], charted in 2012, has defined an open
standards-based Industrial IoT protocol stack which combines
C. Wifi and Low-Power Wifi (LP-Wifi)
IEEE lower layers (IEEE 802.15.4 PHY and IEEE 802.15.4e
TSCH), with IETF higher layers (6LoWPAN). Such protocol The IEEE802.11 standard, better known as Wifi, was re-
stack designed for Industrial IoT networks, is able to fulfill leased in its first version in 1997, and designed without IoT in
their stringent requirements, in terms of low latency, ultra low mind. In fact, its final aim was to provide high throughput
jitter, and high reliability [7]. to a limited number of devices (called stations), located
indoor, at a short distance between each other. Even though
nowadays widespread, Wifi has not been applied into M2M-
B. Bluetooth Low Energy (BLE) IoT use cases, due to its large energy consumption, fairly high
In 2010 the Bluetooth Special Interest Group (SIG) pro- compared to other standards. For instance, Bluetooth, with
posed BLE in the Bluetooth 4.0 specification [22], nowadays its shorter propagation range, (between 1 and 100 m), offer
updated to version 4.1. BLE is a smart low energy version of a lower power consumption; while ZigBee have fairly long
Bluetooth, still designed for short-range communication (up range, but much lower data rate.
to 50 m), but, mainly suitable for low-power, control and To overcome such energy-related limitation (which impacts
monitoring applications (e.g., automotive, entertainment, home on the battery life of devices), duty cycling and hardware op-
automation, etc.). BLE operates in the 2.4 GHz Industrial timization have been adopted by the IEEE802.11 community,
Scientific Medical (ISM) band, and defines 40 channels, with achieving in this way, extremely energy efficient solutions.
2 MHz channel spacing. To the final aim of achieving low Despite the reduced energy consumption, Wifi still suffers of
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poor mobility and roaming support. In fact, it does not offer an area for which traditional cellular M2M systems have not
any guaranteed QoS, and it is affected by high interference, been optimized . The term LPWA which was introduced by
due to sharing the unlicensed 2.4 GHz band, together with Machina Research to the market, stands for high reach, low
ZigBee, Bluetooth, and many others ISM band devices. cost, low power Wide Area Networks [5]. Primarily designed
To reduce interference issues, the IEEE 802 LAN/MAN for M2M networking, it operates in unlicensed spectrum, and
Standards Committee (LMSC) has proposed the use of the sub it is currently available in many different proprietary solu-
1GHz (S1G) license-exempt bands, which have better prop- tions (Amber Wireless, Coronis, Huawei’s CIoT, LoRa, M2M
agation properties, especially in outdoor scenario, compared Spectrum Networks, NWave, On-Ramp Wireless, Senaptic,
to traditional WiFi 2.4 ad 5 GHz bands. It is possible to Sigfox, Weightless, among many others). While most of these
increases the transmission range up to 1 km, while still using technologies have been present in the market for some time, it
the default transmission power of 200 mW. However, due to is Sigfox with its Network Operator strategy that has recently
the extremely scarce available spectrum, S1G does not allow kick-started the LPWA market. Aware of its potential, the
the use of wide bands (like those adopted by .11n, and .11ac, LoRa Alliance, Sigfox, amd Weigthless are engaged in LPWA
> 20 MHz). Therefore, accurate design considerations, such standardization activities, aiming towards licensed spectrum,
as new modulation and coding schemes were introduced in and overcome interoperability issues which may delay its roll-
the .11ac amendment. out. According to Machina Research, which has first forecast
In 2010, LMSC formed the IEEE802.11ah Task Group the market opportunity for such technology in early 2013,
(TGah), also called Low-Power Wifi, responsible of extending LPWA will allow to interconnect a large number of low-cost
the application area of Wifi networks, to meet the IoT require- devices (up to 60% by 2022, with 3 billions LPWA M2M
ments (large number of devices, large coverage range, and connections, by 2023), making the M2M solution business
energy constrains). In many IoT applications (e.g., smart grids, profitable, and providing a platform to build a large IoT
industrial automation, environmental monitoring, healthcare, business [5].
fitness systems), an access point (AP) has to cover hundreds, The key features of LPWA can be summarized as follow: (i)
or even thousands of devices (sensors and actuators), which wide area coverage ( up to some tenths of Km), (ii) low cost
periodically transmit short packets. One of the main challenges communication, (ii) long battery life (up to 10 years from a
for the adoption of legacy IEEE802.11 has been the limited single AA battery), and (iv) low bandwidth communication.
number of stations that can be simultaneously associated The latter limits the LPWA range of applications to a set of
with the same AP. The IEEE802.11ah standard overcomes M2M use cases, characterized by low data rate, and infrequent
such shortcoming, by introducing a novel hierarchical method transmissions (few hundred bytes of data) [27].
which defines groups of stations, and allows support for large LPWA is not intended to replace cellular connections, but
number of devices [25]. rather it will be complementary to existing cellular technolo-
IEEE802.11ah uses sub-1GHz frequency bands and the gies. As discussed later in the paper 3GPP has also initiated
PHY layer design is based on the IEEE 802.11ac standard. work to make cellular systems, such as GSM and LTE, more
To accommodate narrower channel bandwidths, the IEEE suitable for low end MTC applications.
802.11ah physical layer is obtained by down-clocking ten Despite its appealing and promising features, LPWA
times the IEEE 802.11ac physical layer. The TGah has put presents some downsides, mainly due to the use of unlicensed
a lot of effort into improving the IEEE802.11 MAC layer to spectrum for long-range communication. Notably, the effective
obtain power efficiency, and reduce the overhead due to (a) radiated power (ERP) in that part of the license-exempt band
short packet transmission, and (b) long time features of Wifi is heavily regulated in terms of allowed transmission powers
PHY. Both issues implies a large amount of channel resources, (after antenna gain), duty cycles and access mechanisms. Since
occupied by frame headers, interframe spaces, control and antennas at the basestation and at the IoT device have entirely
management frames, and wasted for repeated channel access different gain capabilities, the link capabilities in up and
procedure (following collisions). New short frame formats, downlink are skewed with the uplink having a link budget
advanced channel access mechanisms, novel power manage- advantage of up to 19dB. While European regulation allows
ments mechanisms are among the solutions designed by TGah, for a boosted downlink power of 13dB, a difference of at least
which allows low-cost connectivity with Wifi in unlicensed 6dB remains which means that truly symmetrical connectivity
bands. First performance studies [26] show that IEEE802.11ah cannot be guaranteed. This means that simple operations, like
will support a large set of M2M scenarios, such as agriculture sending an acknowledgement, cannot be executed seamlessly
monitoring, smart metering, industrial automation. It will be as in 3GPP technologies. Consequently, only a limited set of
able to provide a QoS level higher than currently provisioned IoT applications can be supported through this technology.
in mobile networks, and enable scalable and cost-effective Moreover, LPWA cannot fulfill the scalability requirements
solutions. of large-scale IoT deployments, due to an impeding spec-
trum congestion [28]. According to Cisco IBSG prediction
there will be 50 billion devices connected to the Internet by
D. Low Power Wide Area (LPWA) 2020. With such explosion of devices connected through IoT,
The LPWA technology has recently emerged specifically fo- millions of devices may appear within the coverage area of
cusing on low-end IoT applications which require low cost de- a single LPWA base station. Many of those will be using
vice, long battery life time, small amounts of data exchanged, other radio technologies that share the spectrum with LPWA,
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such as LP-Wifi, Z-Wave, Zigbee, IEEE 802.15.4g, etc. All A. MTC Generation Tradeoff
these transmission will be perceived as interference by the Considering the stringent requirements of M2M, the 2G
LPWA device, having low receiver sensitivity for long-range technology family, i.e. GSM and GPRS/EGPRS, is ideal as
communication. power consumption and cost are low, coverage global and the
Nevertheless, LPWA is expected to be a key enabler for eco-system is developed; however, from an economic point of
IoT deployments in early market rollouts and for limited IoT view it is perceived to be much more viable to revise the
applications. bands for next generation systems.
The 3G family, i.e. UMTS and HSPA, has a lower power
efficiency and higher modem cost than 2G. The capabilities
E. 3GPP Cellular: MTC exceed the requirements of many low end IoT applications and
Within the cellular context, the IoT connectivity solution may therefore be a less preferable choice for such applications.
is referred to as machine-to-machine (M2M) and within the 3G has however proven popular for e.g. automotive M2M
3GPP standardization body it is referred to as machine-type applications and other more demanding M2M applications due
communications (MTC). The industry vision is to enable to the wide range of data rates required.
connectivity between machines in an autonomous manner 4G technologies, i.e LTE and LTE-A, are interesting again
where such a connectivity was traditionally facilitated by since the capabilities meet the requirements for very demand-
means of wires. Even though the wired M2M market will ing MTC applications; the air interface, OFDM(A), allows the
remain , scalability can only be achieved through an untethered scaling of the bandwidth according to needs. Modem cost
approach. Wireless MTC solutions have thus emerged which in early LTE releases is however an issue and the coverage
offer viable business benefits but also exhibit shortcomings. is in some markets still patchy even if coverage increases
MTC is attractive when compared to wired solutions for quickly on a global level. A further argument for use of
a variety of reasons, such as robustness against single point 4G LTE for MTC applications is to benefit from improved
of failures or ease of deployment. The main challenge for spectral efficiency and the bandwidth flexibility offered by 4G
wireless solutions however is related to the cost of the radio, systems and longevity of the technology as a future cellular
the power consumption but also the variety of M2M services. system. Uptake, due to a rather patchy 4G coverage, is only
Compared to the other technologies which were reviewed catching up now and the challenge of adapting a 4G LTE
in previous sections, cellular MTC is able to offer quality system (that was specifically designed for efficient broadband
of service (QoS) support, mobility and roaming support, as communication) to also deliver and support MTC applications
well as billing, security and global coverage. Another area remains.
where cellular MTC excels today is the ability to connect 5G may thus be a timely technology offering lower cost,
the sensors/devices through a standardized API to the core lower energy consumption and support for very large number
enterprise systems, all in real-time, scalable and secure. of devices. Indeed, these requirements are at the forefront of
Despite the convincing advantages, some serious challenges the 5G MTC design and − if successful − will undoubtedly
remain to make MTC an underlying connectivity backbone for be an integral part of the Internet of Things in years to come.
the Internet of Things. These challenges affect the device and The requirements and standardization initiatives which lead
networking levels, as well as viability of business models. into these design developments are reviewed in the following
In the following Sec. III-IV, we describe all the current Section III.
initiatives in 3GPP, and the effort still needed for making MTC
a key enabler of the IoT ecosystem. B. MTC Technical Requirements
3GPP cellular systems were primarily designed for human
III. 3GPP MTC R EQUIREMENTS & S TANDARDS voice and data use, and less so for machine needs. A important
point to consider for all the requirements is backwards com-
One of the major differences between the 4G and 5G design patibility. This is because IoT devices, whether cIoT or iIoT,
efforts is the support of a truly large number of devices so as will likely stay for a longer time in the field which impacts
to enable the vision of a truly global Internet of Things. Given technology migration, among others.
the vast array of connectivity technologies developed over past 1) Need for ”Zero-Complexity”: One of the most stringent
decades (presented in previous Section II), the emergence of a requirements are those on lowering device complexity to vir-
cellular technology as a true contender may seem rather sur- tually zero. This will positively impact the cost of the devices,
prising since power consumption is significant and both capital since silicon costs are virtually absent. To this end, 3GPP study
expenditure (CAPEX) and operational expenditures (OPEX) items identified several features that are not required for MTC
perceived to be very high. On the other hand, the undisputed devices and could reduce device complexity significantly.
global coverage, the massive inter-operable ecosystem and the Notably, it was proposed for LTE to limit device capability
ability to service critical data traffic give a lot of credibility to a single receive RF chain, restricting supported peak data
to this technology family. rates to the maximum required by IoT applications, reducing
To this end, in this section we review in more details the 4G supported data bandwidth and support of half duplex operation
Generation, the MTC requirements and we explain respective as key to reduce device complexity, among a few others.
standardization initiatives. Standardization work is needed to ensure that maintaining
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system performance with normal 3GPP devices with additional the network and be able to restrict access for MTC devices.
scheduler restrictions to serve these low complexity devices is One of the concerns operators share is restricting access to
achievable. Considering the timeline, 3GPP has closed some roaming devices. Notably, the operator should be able to
of the complexity reduction specifications for LTE in Release identify such roaming MTC devices from MTC specific user
12; the remaining and new complexity items are dealt with in equipment (UE) category and be able to restrict access to the
Release 13 and subsequent releases. devices if the operator does not wish to service those devices.
2) Need for Long battery life time: A large fraction of 5) Service Exposure and Enablement Support: 3rd party
the IoT devices will be battery operated and may be located support to the 3GPP system is rather important from a scalabil-
in remote areas where changing or charging batteries may ity point of view. Therefore, service exposure and enablement
not be possible or economically feasible. Miniaturization of support are instrumental for MTC to succeed as a connectivity
devices also imply that the physical size of batteries will solution for the emerging IoT. Standardization work related
be smaller which means that the total available energy in a to M2M service enablement is on-going in standardization
battery may not increase even if battery technology evolves. organisations outside 3GPP (e.g. ETSI TC M2M and the
The communication module in IoT devices therefore needs to oneM2M Global Initiative, described in Section V). 3GPP’s
be very energy efficient in order to enable battery life times of support for service exposure and enablement however allows
decades. A battery life time of 10 years is already feasible for 3GPP capabilities to be natively offered outside the 3GPP core.
infrequent data transmissions with both LPWA technologies For this to work, additional information (e.g. transmission
and in LTE Rel-12 ; the challenge for 5G may therefore be to scheduling information or indications for small data, device
allow battery life time of more than one decade also for more triggering, etc.), and new interfaces between the 3GPP Core
frequent data transmissions. Network and application platforms will need to be provided.
3) Need for Coverage Improvement: Many of the industrial Importantly in this context, to ensure privacy for consumer
and even consumer IoT applications will require high levels of IoT, exposed network information needs to be delinked from
coverage. Examples of such applications are smart metering, private user/subscriber information.
factory automation with basement coverage, etc. Many of the
connectivity business models only work if and only if almost
C. 3GPP MTC Standardization
all devices in the network can be reached. Due to the nature
of the wireless channel providing 100% coverage including 3GPP technologies and their continuous enhancements are
indoor locations for example in basements is very costly. staged in different releases in 3GPP (see Figure 1. An impor-
There is a need to reach also the last few percent of devices tant aspect contributing to the success of 3GPP technologies
in challenging locations without adding significantly to the for cellular use is maintaining backward compatibility with
total cost of the complete solution. Increasing the number of legacy releases and tight interworking between technologies
base stations is in theory a solution but comes at the additional and efficient roaming support which is also key for M2M/MTC
cost of site acquisition/rental, backhaul provisioning, among applications that require support for mobility.
others. A viable approach could be to improve coverage 3GPP specification work is roughly grouped into RAN,
levels in some critical application contexts without adding SA, GERAN and CT. Each of these groups is responsible
significantly to the overall cost of the solution. To this end, for defining functions, requirements and interfaces of 3GPP
3GPP is stipulating low complexity and improved coverage systems. More specifically, RAN is responsible for the radio
MTC devices to facilitate a scalable IoT uptake. Notably, access part of 3G, 4G and now 5G. GERAN is responsible
coverage improvement is achieved by repetition of information for radio access part of 2G and its evolution. SA has the re-
with more details provided in 3GPP Release 12, Stage 3. sponsibility for the overall architecture and service capability.
4) Need for MTC User Identification & Control: A large And CT is responsible for specification of terminal interfaces
part of the low-cost MTC devices will have a SIM integrated; and capabilities and the core network part of 3GPP systems.
however, it is envisaged that − for scalability, configuration 3GPP features are phased into releases and the work may
and complexity reasons − some MTC devices will not contain be preceded by a study to ensure a rough industry consensus
a SIM. In that case it is essential to be able to individually and a better understanding of the problem at hand; lately,
regulate access using prior defined SIM profiles. In general, all new features are preceded by a study phase. 3GPP has
the SIM card contains the IMSI of the subscriber with direct adopted the notion of releases to ensure a stable platform
link to the HLR; the latter includes details about subscribed for implementation while facilitating introduction of new
MTC services and feature profile. Operators are already able features.
to support customized MTC services based on the subscription While the idea of cellular underpinning the connectivity
profile, such as optimal data packet size, optimal routing of the emerging IoT is rather new, actual standardisation
with dedicated Access Point Name (APN) for MTC services, work started as early as 2005! Notably, 3GPP TSG SA1
etc. Through the IMSI, specific charging policy for MTC (group defining services) started with a feasibility study to
subscription is provisioned by the operator and the operator conclude with a report during 2007 as captured in 3GPP
has complete control over the subscriber that is allowed in the Technical Report (TR) 22.868. 3GPP Release 10 Technical
network. 3GPP is likely to define one or more new LTE UE Specification (TS) 22.368 specifies the Machine-to-Machine
categories for MTC. This will be one of the means to identify communications requirements. Then, refinement of require-
and isolate MTC devices if they are impacting performance of ments, logical analysis was captured in 3GPP TR 23.888
7

Fig. 1. 3GPP releases and timeline.

and protocol implementation were staged for release 11 and each other. The authentication mechanism also produces keys,
captured in respective TS document of responsible working which are then used for encryption and integrity protection of
groups. Furthermore, charging requirements were addressed by the communication on the radio interface. Subscriber privacy
SA5 to reuse existing 3GPP functions (e.g. session initiation in 3GPP systems is considered by using randomly assigned
and control) to the extent possible. 3GPP architecture work temporary identifiers to make tracking of devices and users
on MTC started. In Rel-10 and in Rel-12 SA2 worked on more difficult.
efficient transmission of Small Data Transmissions and Low Recently 3GPP have worked on enhancements specifically
Power Consumption UEs. Ever since, the amount of study aimed at MTC applications. The new requirements emerged
items and technical specifications for MTC have increased due to characteristics of MTC such as reduced signaling and
steadily and are now a core ingredient of standardization work. even 10 years battery lifetime are being taken into account
The standardization of a new 5G air interface is foreseen in the security work. 3GPP is working on to enhance the
by 3GPP to be divided in phases where the first phase, with security level of GPRS in order to support the so called
a finalization targeted during 2018, is focusing on early com- GPRS-based cellular IoT system [29]. Another work is to
mercial deployments and a subset of the 5G requirements. The develop security solutions for 3GPP systems to support very
second phase of the standardization, targeted to be finalized low complexity and low cost devices targeting 10 years battery
at the end of 2019, targets fulfillment of the full set of 5G lifetime [30]. The challenges of the removable SIM card to
requirements. meet the requirements of MTC, like remotely changing the
subscription and fitting a SIM card into a tiny device, were
studied in 3GPP some years ago, but the standardization work
D. 3GPP Security was started in GSMA and ETSI, and it still continuing under
The security framework used in 3GPP systems was orig- the name of embedded SIM.
inally developed for GSM to provide a basic connectivity
service for human to human communication. The security IV. 5G I OT E NABLERS
features of GSM were encryption of the air interface to avoid In order to enable the ubiquitous connectivity required for
eavesdropping and strong authentication mechanism of the many of the IoT applications, many more features and func-
users. The main security solution was kept for 3G and 4G, tionalities will need to be added to the currently predominantly
but enhancements were done to enhance the security level broadband approach. This inherently leads to a strong hetero-
such as introducing state of the art encryption algorithms, geneous networking (HetNet) paradigm with multiple types
more elaborate key management systems, integrity protection of wireless access nodes (with different MAC/PHY, coverage,
of signaling and mutual authentication. The 3GPP security backhaul connectivity, QoS design parameters, among others).
framework is based on the tamper resistant SIM card, which HetNets will offer the required seamless connectivity for the
holds the credentials of the subscriber. By using the credentials emerging IoT through a complex set of mechanisms for coordi-
of the SIM card and corresponding credentials stored in the nation and management [31]–[35]. Evolved 4G and emerging
network, the device and the network mutually authenticate 5G networks will thus be characterized by interoperability and
8

integration between multiple radio access networks, including the device can turn off all functionality requiring the device
unlicensed frequencies. The aim of this section is to review to listen while in idle mode. Consequently the device does not
recently finished 4G, currently ongoing 4G-Evolution as well receive paging messages or perform link quality measurements
as emerging 5G design efforts towards accommodating IoT in in PSM. Since the device remains attached to the network,
such a heterogeneous networking setting. less signaling is required compared to the approach where the
device would be completely shut off when not transmitting.
The device can transmit up-link data at any time but is only
A. 4G-Evolution Feature Enhancements
reachable in down-link when the device has been active in up-
Some of the requirements outlined in Section III have link, which happens at configurable time instances or when the
already been addressed by the 3GPP community, which con- device has transmitted up-link data.
stitutes an important step towards IoT connectivity. Some of 4) Overload & Congestion Control at RAN/CN: MTC de-
the most important solutions are briefly summarized below. vices cause signalling overload as they simultaneously recover
1) Narrowband operation: Work is ongoing in 3GPP to triggering registration and other procedures causing increased
specify a narrowband version of LTE named narrowband IoT signalling and core network overload when trying to respond
(NB-IoT) especially targeting MTC applications with low data simultaneously. Specifically on network failure, there could
rate and need for low module cost and long battery life time. be a sudden surge in signalling as MTC UE associated with
With a bandwidth of 180 kHz NB-IoT can be deployed in the network reselect to alternate network (possibly roaming)
a re-farmed GSM carrier offering an alternative use of GSM simultaneously to the not yet failed network. A Rel-10 study
spectrum. Alternatively it can be deployed in the guard bands item on Network Improvements for Machine-type Commu-
of LTE spectrum allocations or using part of an operators LTE nications (NIMTC) studied core network aspects of overload
spectrum. The details of the air interface design are still to be and congestion control. A Rel-11 study item on RAN im-
settled and the higher layer protocols starting from Layer 2 provements for MTC was started Q4, 2009. A Rel-11 umbrella
and upwards will be common between NB-IoT and LTE. By work item on system improvements to MTC started in May
making the solution similar to LTE the large eco-system for 2010; this work item also addresses RAN overload control for
LTE modules can be mobilized to secure availability of device UTRAN and E-UTRAN. In essence, a mechanism to prevent
chipsets and a fast rollout. The performance requirements for and control such scenarios is performed by configuring MTC
NB-IoT are similar as for the wideband LTE MTC solution, UEs ”low priority access” indicator identifying the devices
the main benefit lies in that the narrowband operation leads to as delay tolerant devices; this can be used by the network to
flexibility in the deployment. control various procedures. In UTRAN or E-UTRAN the RAN
2) Low Cost & Enhanced Coverage: 3GPP developed (RNC for UTRAN and eNB for E-UTRAN) would reject the
techniques enabling reduced UE complexity and improved connection request from the UE with an extended wait time
coverage compared to normal LTE user equipment. Details are of up to 30 minutes when overload is indicated by the Core
captured in 3GPP TR 36.888 [11]. Release 12 introduces a new Network to the RAN.
UE category with reduced peak rate (1Mbit/s), a restriction in 5) Other Enhancements: 3GPP Release 12 dealt with fur-
MIMO modes to a single receive antenna and half duplex ther MTC enhancements which were not addressed in previous
operation. releases. For example, the issues for optimisations of clusters
Release 13 aims at further reducing the complexity by of MTC devices, MTC group addressing, and other group
specifying a reduced bandwidth (1.4 MHz) and a lower UE features have been considered through fine-tuned broadcast
power class to facilitate single chip implementations with message protocols. Furthermore, enhancements to the roaming
integrated power amplifier instead of having it as an external of MTC devices have been specified and optimized by using
component. the low access priority indication provided by the UE; a
The Bill of Materials of a Rel-12 and Rel-13 MTC op- eNB steers UEs configured for low access priority to specific
timized device has been estimated to be by 3GPP [11], MMEs. Currently, 3GPP Release 13 and future releases are
respectively, 50 percent and 75-80 percent lower than for the expected to enable further support for efficient delivery of
early Rel-8 Category 1 UE. MTC services and mass deployments of MTC devices.
Finally, coverage improvement through data repetition is
enabled; but this feature is only recommended for delay-
tolerant MTC devices. B. 4G-Evolution & 5G RAT Enablers
3) Device Power Saving: The main source of the energy We now consider some pertinent radio access technologies
consumption for MTC devices in pre-Release 12 devices is the (RATs) in evolved 4G as well as 5G systems. We discuss
periodical listening for possible paging messages which needs their relevance to Internet of Things (IoT) and Machine-to-
to be done at least once every 2.56s (the maximum cycle of Machine (M2M) services. Given that coverage extension was
the discontinuous reception (DRX)), and performing various such an important design item, we start discussing the role of
link quality measurements. For typical MTC traffic patterns, relaying. We then discuss the relevance of the much-discussed
the energy required for transmitting messages is only a small mm-wave and device-to-device (D2D) technologies.
fraction of the total energy consumed. A mechanism to reduce 1) Relaying for Increased Coverage: Relaying is a key
the power consumption for MTC devices was introduced in technology for 5G systems [36]. In its classic formulation, it
3GPP Release 12, the Power Saving Mode (PSM). In PSM is meant for extending the communication range of a Base
9

Station (BS) and improve throughput by means of Relay suggest that mm-wave frequencies could be used to augment
Stations (RSs). In 4G/5G systems, relaying techniques can also the currently saturated 700 MHz to 2.6 GHz radio spectrum
include chains of relaying nodes and mobile relaying nodes in bands for wireless communications. The combination of cost-
order to improve coverage, support bandwidth hungry services, effective CMOS technology that can now operate well into the
and provide connectivity to M2M systems. RSs can help mm-wave frequency bands, and high-gain, steerable antennas
reaching users that are either outside or inside the coverage at the mobile and base station, strengthens the viability of
of the BS [37]. In the first case, the RS simply extends the mm-wave wireless communications. Further, mm-wave carrier
perimeter of a cell so that it is possible to reach also users frequencies allow for larger bandwidth allocations, which
that are far from the BS. In the second case, the RS enables translates directly to higher data transfer rates.
multipath diversity techniques to magnify the connectivity Among the main issues which need to be tackled are the
strength to users that are weakly served by the BS. high propagation losses at the mm-wave frequencies, which
Four different transmission schemas can be used by RSs: call for high density of antennas, particularly in difficult
Amplify and Forward, Demodulate and Forward, Selective environments like city centers; effects such as reflections and
Decode and Forward, and Buffer Aided, which are ordered fading pose serious technical obstacles which need to be
by increased latencies and reliability [38]. With Amplify and addressed. The great capacity offered by mm-wave would
Forward, the RS simply repeats an amplified copy of received enable high-rate MTC applications, such as automatic video
signals. With Demodulation and Forward, received signals are surveillance cameras. Furthermore, the short range of mm-
demodulated (without decoding) by the RS, which also makes wave could be interesting for D2D situations (see below).
a hard decision before modulating and forwarding the new Albeit seemingly an overdesign for largely low-rate IoT appli-
signals to the next hop. With Selective Decode and Forward, cations, mm-wave offers the interesting possibility to construct
received signals are fully decoded and checked. In case of very, very short over-the-air data packets. This, in turn, allows
successful decoding, the signals are encoded and forwarded an even more aggressive duty cycling of MTC devices and
to the next hop. With Buffer Aided approaches data are thus possibly vital energy savings to extend the IoT devices’
temporarily stored by the RS in order to encode and forward lifetime. In fact, low power mm-wave interfaces would be used
them as soon as the channel quality is sufficiently high. This in D2D communications, thus saving the energy required by
kind of scheme can only be used for services not sensitive the cellular radio interface.
to delay. Another relevant aspect for RSs is the spectrum 3) Device-to-Device Communications: Device to Device
used for access and backhaul links, which can be overlapped (D2D) communications represents a turning point in cellular
(inband relaying) or disjoined (outband relaying) [39]. With systems. They entail the possibility that two devices can
outband schemes, RS can enable full duplex communications; exchange data without the involvement of the BS or with just a
In contrast, with inband mechanisms, interference between partial aid from the BS [40]. In contrast to WiFi and Bluetooth
access and backhaul links can arise, so that time division technologies, which provide D2D capabilities in the unlicensed
multiplexing is required. band, with D2D communications the Quality of Service (QoS)
With reference to IoT systems, relaying technologies could is controllable because of the use of the licensed spectrum. A
improve the scalability of network access operations to ensure new generation of scenarios and services in 5G systems can
the required coverage extension. . In fact, in cells with a hence be enabled, including device relaying, context-aware
very high density of IoT devices it is possible to let them services, mobile cloud computing, off load strategies, and
associate to different RSs so that the burden of network access disaster recovery. Four different types of D2D communications
is distributed among many nodes. In other words, without can be distinguished:
RSs, all IoT devices within one cell associate to the same • Device relaying with operator controlled link establish-
BS, which causes network overload. In addition, the adoption ment: any device can broaden the coverage of the BS, by
of RSs can improve the fault tolerance of the communication acting as a relay node.
infrastructure because the BS is no longer a single point • Direct D2D communication with operator controlled link
of failure. Because relaying technologies strengthen the sig- establishment: any pair of network nodes can directly
nal to noise ratio, the reliability and timeliness of message interact due to a D2D link, which is set up under the
exchanged with IoT services are improved and the support control of the operator.
to mission critical applications becomes easier. For group • Device relaying with device controlled link establish-
based communications, multicast services on top of multi-hop ment: the endpoints of a data session are in charge of
networks of RSs need to be defined. Another challenge (which setting up a relaying infrastructure made of one or more
is common to 4G and 5G systems) is the coordination of the relaying devices.
communication activities between the RSs in order to optimize • Direct D2D communication with device controlled link
the channel usage with a limited signaling overhead. establishment: any pair of devices can exchange messages
2) Millimeter Wave Technologies: As the demand for ca- thanks to a D2D link, which is established without any
pacity in mobile broadband communications increases dramat- operator control.
ically every year, wireless carriers must be prepared to support Enabling IoT communications in the licensed band is essen-
up to a thousand-fold increase in total mobile traffic by 2020, tial to strengthening the support to mission critical applications
requiring researchers to seek greater capacity and to find new and group communications. Besides these advantages of D2D
wireless spectrum beyond the 4G standard. Recent studies communications, security, trust, interference management, re-
10

source discovery, and pricing issues should be addressed to 3) Radio Access Network as a Service: The solution space
capitalize the potential of this technology. These issues become of 5G management architectures spans from centralized to
very challenging when the D2D link is set up without any fully distributed ones. Based on the degree of centralization
involvement of the BS. Moreover, new business models are different scalability, stability, and optimality targets can be
required to answer the ”pay for what” question. In fact, devices reached. To sustain flexible management approaches the Radio
that act as relays will deplete their own resources (as battery, Access Network as a Service (RANaaS) concept has been
storage, communication, and processing) to assist theD2D developed [44]. With the RANaaS, Radio Access Network
model. Cross-operator D2D capability is an open challenge (RAN) resources are virtualized and exposed through cloud
complicated by the fact that FDD spectrum bands are different platforms. By using this approach, management function-
for different operators. alities can be split between BSs and the cloud based on
the degree of centralization that is required in any specific
networking context. Of course, when BS functionalities are
C. 4G-Evolution & 5G RAN Enablers migrated to the cloud some extra delay may be incurred
in the , execution of management operations, so that the
T The RATs, illustrated in Sec. IV-B, will need to be degree of centralization should be proportional to the capacity
supported by a suitable RAN. Some interesting propositions of the backhaul. RANaaS enables : (i) dynamic wireless
have been made w.r.t. RAN which are briefly discussed here. capacity allocation in time and space varying 5G systems;
1) Decoupled Down/Uplinks: The traditional notion of a (ii) increased flexibility of management platforms due to a
cell is changing dramatically given the increasing degree of technology independent state representation of hyper-dense 5G
heterogeneity. Rather than belonging to a specific cell, a device deployments; (iii) new stores of management functionalities
would choose the most suitable connection from the many provided by third parties (i.e., new business opportunities);
possible of connections available. In such a setting, given (iv) easy coexistence of multiple operators, sharing the same
that transmission powers differ significantly between downlink physical infrastructure.
(DL) and uplink (UL), a wireless device that sees multiple With reference to IoT systems, self -* capabilities, includ-
BSs may access the infrastructure in a way that it receives the ing self-healing, self-configuration, self-protection, and self-
DL traffic from one BS and sends UL traffic through another optimization, can improve the flexibility and extensibility of
BS. This concept had recently been introduced and is referred the communication infrastructure due to modern orchestra-
to as Downlink and Uplink Decoupling (DUDe) [41]–[43]. tion of available radio access and IoT technologies [45]. In
DUDe was shown to yield significant throughput gains and, critical applications, self-* functionalities could allocate extra
more importantly in the context of the IoT, orders of magnitude bandwidth to those IoT devices that detected some dangerous
improvements in reliability. The high-level system architecture events and hence need to communicate at the maximum speed
is shown in Figure 2 where some IoT devices in a given area (and with the highest reliability and timeliness). Also, self-*
are connected in DL/UL to the macrocell, some are connected functionalities can ease the optimization of radio resources so
in DL/UL to the smallcell; and some have a decoupled access. that a higher number of devices can be connected to the net-
work, which is essential for a mass scale IoT deployments. The
key challenge related to self -* capabilities is tuning degree of
centralization and to enable radio resource optimization also in
presence of coexisting operators that share the same physical
infrastructure.

D. 4G-Evolution & 5G Network Enablers


Finally, we discuss the emerging network enablers which
are pertinent to supporting the above IoT RAT/RAN enablers.
From several possible enablers, we shall focus on software
Fig. 2. DUDe system model for UL/DL decoupling. defined networking (SDN) and Network Function Virtualiza-
tion (NFV).
2) License Assisted Access: Recently, the 3GPP com- 1) Software Defined Networking: The Software Defined
menced a work item on License Assisted Access (LAA), Networking (SDN) paradigm initially designed for wired
where licensed and unlicensed carriers are aggregated. LAA networks (e.g., data centers), has recently gained a lot of
uses licensed spectrum for control-related transmissions while interest into the wireless environment [46], and it is seen
sending data over both licensed and license-exempt carriers. as a key technology enabler for 5G networks [47], [48].
Whilst mainly designed for high-capacity applications, the SDN separates the data plane (i.e., the traffic forwarding
approach could be beneficial in the context of a ever-increasing between network devices, such as switches, routers, end hosts)
amount of IoT devices with increasing data rate demands. from the control plane (i.e., the decision making about the
Notably, all non-critical IoT traffic could be transmitted via the routing of traffic flow - forwarding rule) [49]. SDN cen-
licence-exempt band whilst being controlled from the licensed tralizes network control into a logical entity, namely SDN
band. controller, and allows programmability of the network, by
11

external applications. With its centralized view of the network and, as a legacy, the same approach has been applied, in
(topology, active flows, etc.), SDN provides dynamic, flexible, the last twenty years, to define currently available M2M spec-
and automated reconfiguration of the network. SDN will be ifications. Nowadays, each vendor adopts its own protocols
able to address flexibility and interoperability challenges of and data formats so that interoperability remains an utopian
future multi-vendor, multi-tenant 5G scenarios. In fact, with requirement, while vendor lock-in issues worsen the quality-
SDN it will be possible to deploy a vendor-independent service price tradeoff and hinder the diffusion of IoT technologies.
delivery platform, able to proactive respond to the changing Recently, two noticeably international standardization projects
business, end-users and market needs. Therefore, SDN will (i.e., ESTI SmartM2M and oneM2M) have been formulated
simplify network design, management and maintenance in to resolve fragmentation issues in M2M systems, based on
heterogeneous networked environments [50]. a RESTful design [54]. Both of them target the definition of
With the explosion of devices connected through IoT, tra- an horizontal service layer that is able to embrace different
ditional network architectures will not be able to manage existing communication technologies and to include future
both the volume of devices, and the amount of data they extensions to 5G systems.
will be dumping into the network. There will be need to
efficient manage the load of traffic and the network resources A. ETSI SmartM2M
in the 5G era, to avoid possible collapse of the network, One of the most relevant attempts to resolve fragmentation
and allow the coexistence of different services with different issues has been put in place by European Telecommunications
Quality of Service (QoS) requirements [51]. SDN will be Standards Institute (ETSI), which defined a horizontal service
among the technologies addressing such issues in future IoT platform for M2M interoperability. The resulting SmartM2M
applications, as envisaged by the current emerging activities standard platform is based on a RESTful Service Capability
at IETF (DetNet, 6TiSCH). Layer (SCL) [55] and it is accessible through open interfaces.
2) Network Function Virtualization: Network Function Vir- Using this horizontal service layer it becomes possible to set
tualization (NFV) is a complementary technology of SDN, up IoT services in a technology independent way.
destined to impact future 5G networks. NFV aims to virtualize The different instances of the SCL can run on top of
a set of network functions, by deploying them into software devices, gateways, and network instances (see also Fig. 3)
packages, which can be assembled and chained to create to enable generic communication, reachability, addressing ,
the same services provided by legacy networks. The NFV remote entity management, security, history and data retention,
concept comes from the classical service whereby many transaction management, , and interworking proxy.
virtual machines running different operating systems, software The smartM2M architecture is made of two domains: the
and processors, can be installed on the same server. By mov- Device/Gateway Domain and the Network Domain. The for-
ing network functions from dedicated hardware into general mer includes devices and gateways. The latter represents an
purpose computing/storage platforms (e.g. servers), NFV abstract system that enables all the services entailed by the
technologies will allows to manage many heterogeneous IoT smartM2M architectures by leveraging the resources available
devices. Moreover, by implementing the network functions at the lower domain.
in software packages that can be deployed in virtualized An M2M Device can run M2M Applications using a local
infrustructure, NFV offers scalability and large flexibility in instance of the SCL. In this case, it is connected directly to the
operating and managing mobile devices. With NFV it will be Network Domain via the Access network and it may provide
possible to reduce both CAPEX and OPEX. Currently, the use services to other devices. It can also be connected to the
of NFV is under discussion in the context of virtualizing the Network Domain via an M2M Gateway. The M2M Network
core network, and centralizing the base band processing within provides connectivity between M2M Devices and M2M Gate-
Radio Access Networks (RAN) [52]. ways. An M2M Gateway also runs M2M Applications using
a local instance of the SCL and acts as a proxy between M2M
Devices and the Network Domain and may provide service to
V. MTC A RCHITECTURE IN 5G
other devices [53].
M2M architectures allow the different actors of an IoT ETSI M2M adopted a RESTful architecture style, thus an
system to exchange data, check the availability of resources, SCL contains a resource tree where the information is kept.
discover how to compose complex services, handle device The resource tree structure that resides on an SCL as well
registration, and offer a standardized output to any vertical as the procedure for handling the resources have been also
application [53]. Currently, the main challenge with M2M standardized. A Resource is a uniquely addressable entity in
architectures is the vertical fragmentation of the IoT market; the RESTful vocabulary. Each resource has a representation
according to the Global Standards Collaboration Machine-to- that may be transferred and manipulated with the Create,
Machine Task Force, more than 140 organizations are in- Retrieve, Update, and Delete verbs. A resource shall be ad-
volved in M2M standardization worldwide. In this perspective, dressed using a Universal Resource Identifier (URI). Operation
the reasons behind the proliferation of M2M architectures on resource among Applications and SCLs, and between SCL
come from long ago; the first ancestors of the todays’ instances are supported by means of Methods that constitute
M2M systems were the industrial fieldbuses, designed in the the communication on the several interfaces of the SmartM2M
seventies to support process control applications. At that time, architecture. Each method conveys a set of information defined
each production plant was adopting its own M2M technology as Method Attributes.
12

An SCL resources tree (see also Fig. 4) includes different ternational project. oneM2M also targets the definition a hor-
kinds of resources as follows: sclBase, scls, scl, applications, izontal service layer that interconnects heterogeneous M2M
application, and henceforth. The sclBase resource describes hardware and software components on a global scale. oneM2M
the hosting SCL, and is the root for all other resources has been kicked off by seven telecom standards organizations:
within the hosting SCL. The scl resource stores information Association of Radio Industries and Businesses (ARIB) and
related to distant SCLs, residing on other machines, after Telecommunication Technology Committee (TTC), Japan; the
successful mutual authentication. The application resource Alliance for Telecommunications Industry Solutions (ATIS)
stores information about the application after a successful and Telecommunications Industry Association (TIA), United
registration on the hosting SCL. The container resource acts States; the China Communications Standards Association
as a mediator for data buffering to enable data exchange (CCSA), China; the European Telecommunications Standards
between applications and SCLs. The contentInstance resource Institute (ETSI), Europe; and the Telecommunications Tech-
represents a data instance in the container. The accessRight nology Association (TTA), Korea. These organizations in-
resource manages permissions and permissions holders to volve around 270 companies that are actively contributing to
limit and protect the access to the resource tree structure. oneM2M [58].
The group resource enhances resources tree operations by
adding the grouping feature. For instance, a group resource
could be used to write the same content to a group of M2M
resources. The registration resource allows subscribers to
receive asynchronous notification when an event happens such
as the reception of new sensor event or the creation, update,
or delete of a resource. The announced resource contains a
partial representation of a resource in a remote SCL to simplify
discovery request on distributed SCLs. The discovery resource
acts as a search engine for resources. The collection resource,
groups common resources together.

Fig. 4. ETSI URI resource tree structure (example).

From an architectural point of view, both oneM2M and


ETSI SmartM2M adopt a RESTful design, name resources
through a hierarchical name space, and are grounded on the
concept of horizontal service layer. In contrast to SmartM2M,
oneM2M relaxes scalability restraints by adopting an hier-
archical organization of the different actors in the system,
so that a logical tree of nodes is obtained, which include
Fig. 3. SmartM2M high level architecture. application dedicated node (ADN), application service node
(ASN), middle node (MN), and infrastructure node (IN).
With reference to security issues, the standard also defines Nodes consist of at least one common services entity (CSE)
an M2M security framework, encompassing authentication, or one application entity (AE). A CSE is a logical entity
key agreement and establishment, M2M service bootstrap, and that is instantiated in an M2M node and comprises a set of
M2M service connection procedures, grounded on a clearly service functions called common services functions (CSFs).
defined key hierarchy of the M2M node [56]. CSFs can be used by applications and other CSEs. An AE is
The SmartM2M architecture is very flexible and extensible, a logical entity that provides application logic, such as remote
but, as pointed out in [57], it may suffer scalability issues monitoring functionalities, for end-to-end M2M solutions.
because all transactions are mediated by the M2M Network, The standard also defines a security architecture articulated
which can easily become a single point of failure or a over three layers: security functions, security environment ab-
bottleneck. straction, and secure environment. Security functions include:
identification, authentication, authorization, security associa-
B. From SmartM2M to oneM2M tion, sensitive data handling and security administration. Se-
With similar objectives but with a broader partnership, the curity environment abstraction offers many security primitives,
oneM2M Global Initiative has been recently chartered as an in- such as key derivation, data encryption/decryption, signa-
13

ture generation/verification, and security credential read/write off); this yields an estimated saving of 30% in the electricity
from/to the secure environments. This layer is not specified bill in cities.
in the initial release but is expected to be considered in Why, given the supply of technology and strong business
future ones. The security environment layer contains one or models, is the IoT not taking off as quickly as we had hoped?
multiple secure environments that provide different security The reason is because market demand remains consistently
services related to sensitive data storage and sensitive function low. This is entirely normal with new technologies and mar-
execution [59]. kets. For instance, the Internet took more than a decade
to gain widespread use: people were doing accounting and
VI. F LIP OF B USINESS M ODELS shopping for years without the Internet, to change that habit
took time. In the IoT smart city context: the city was manually
The Internet has undergone a massive transformation from measuring air pollution for many years − why would they start
being infrastructure-driven (Ethernet cables, routers, comput- using autonomous sensors now? That is arguably the biggest
ers, etc.) to business-driven (Facebook, eBay, Google). The challenge for the IoT today, i.e. create a genuine demand
Internet of Things is undergoing a similar transformation. among industries and consumers. Once that demand is created
Today, we expend significant efforts to design sensors, con- and procurement as well as supply chains adapted, the IoT will
nectivity radios, gateways and basestations. In a few years’ take off exponentially, just as the Internet has around 2000.
time, efforts will hopefully be on business opportunities, e.g.
a ”Google of Things”; business opportunities here, however,
are strongly dependent on regulation around privacy and trust
B. IoT Return-of-Investment
in the technology. In this section, we therefore discuss this
transformation and the role the telecommunications ecosystem To support the strength of today’s IoT business models,
will likely play. let us examine the typical return of investment (ROI) metrics
used. The ROI is a major driver in the adoption of any
A. Demand-Side Problem in IoT technology, as it indicates the ability to return the initial
financial investment. There are three major ROI arguments
The number of connected ”things” in the Internet of Things to use IoT technologies:
is not meeting the predictions made a few years back. In
general, the IoT rollout lags behind in terms of what market 1) Real-Time Instrumentation ROI: A study by General
research has predicted. This is really surprising to many Electric has identified the enormous efficiency benefits
since there is no doubt that instrumenting the planet with stemming from real-time instrumentation by means of
IoT capabilities would yield significant operational savings industrial IoT technologies [60]. The study has looked
and/or financial gains. To understand the underlying market at verticals like transportation, health, manufacturing,
dynamics, one has to understand that for new technologies etc. While the study has not considered the cost of
to succeed, three things need to come together: i) supply of the instrumentation, the strong ROI drive has become
the technology itself; ii) proven business models which link evident.
supply to demand; and iii) a strong market demand. 2) Big Data Value ROI: Not so well quantified as of 2015,
From previous sections of this paper, we can see that there there is understood to be an enormous value in cross-
is a large supply of connectivity technologies and standards correlating data from different verticals to give unique
available today. These have been tested and many of them are insights which would not be evident on their own.
used successfully in various deployment around the world. An example can be found in smart city transportation
Claims that there is a lack of technologies or standards to where IoT data from traffic is cross-correlated with
unlock the IoT market are largely unfounded. weather and sports data, thus allowing to define viable
traffic management strategies on days where congestion
From a business modeling point of view, numerous models
is likely. That is probably the most important ROI and
are available today and some of them have been successfully
signals the true shift from an infrastructure to a data-
tested in real commercial deployments. For example, in the
driven ecosystem.
smart city market, the city hall could use smart parking sen-
3) Wireless ROI: A fairly straightforward but nonetheless
sors, smart garbage bin sensors and/or smart street- lighting
important drive in rolling out wireless IoT is the fact
sensors. The smart parking sensors are not only able to guide
that getting rid of cables allows achieving substantial
drivers to vacant parking spots (and thereby reducing driving
CAPEX and OPEX gains. While electronics and sensors
time, pollution, etc) but also correlate the occupancy data with
become cheaper over time, human labor and cable
the payment data; the latter allows infringements to be spotted
costs (due to copper) increase. Going wireless saves
more efficiently and thus improve the city’s financial income
cable costs (CAPEX), installation efforts (CAPEX) and
from parking. The smart bin sensors are able to detect when
system maintenance (OPEX).
exactly the bin needs to be emptied, thereby improving pick-up
schedules and saving money to the city hall. The smart street- Above ROI argumentations highlight that there is not only
lighting sensors are able to regulate the usage of the lamps utility in using IoT technologies but there are clear financial
according to ambient light conditions, as well as movement in returns. Once demand has picked up, the market up-take will
the street (i.e. if nobody passes at 3am in the night, they switch almost certainly be guaranteed.
14

C. Zero-Capex IoT Business Models The third ”Cellular Operator Model” opens up other inter-
esting operational, in addition to those already discussed above
In the context of smart cities, many municipalities as well
in this paper. Notably, if/once 3GPP opens up to other IoT
as governments are striving to deliver a higher quality of
connectivity technologies (see below), then it could act as a
public services; however, they are usually challenged by the
truly global IoT control engine. Using 3GPP’s authentication,
lack of funding and poor financial capabilities [61]. So far the
security, billing and SLA capabilities (to mention a few), it
most common means for a city to become smart is to receive
could provide all these services as an umbrella while the
governmental funds; for instance, Glasgow (UK) recently won
underlying technologies can be 3GPP-based or non-3GPP-
a governmental grant of 24 M £ to become the countrys first
based. Technology enablers, such as license-assisted access
smart city. Even though these awards could be perceived as
(LAA), local IP access (LIPA), capillary networking architec-
a good start for smart city initiatives, such awards are not
tures (as developed in ETSI M2M), among many others, are
self-sustaining of deploying IoT technologies.
available already today. In addition, the recent proposition by
Given IoT business models are generally solid (and ac-
Vodafone to fast-track Neul2 -like technologies in 3GPP will
cepted), the demand up-take can be accelerated by covering
likely accelerate such a development.
the often large CAPEX costs by the operational gains. An
From a business point of view, this means that 3GPP would
ideal scenario is where all up-front CAPEX costs are covered
slowly shift from providing data pipes to rather controlling
by a bank through a loan which is being paid back over time
an ensemble of data pipes. That would signal an important
through the financial returns or savings. This approach is is
shift for operators from business-to-consumer (B2C) driven
just beginning in the context of the IoT and smart cities, but
business to rather business-to-business (B2B) driven one. In
early results are available from [62].
principle, this is an important opportunity to scale sales as
Notably, [62] observes that most IoT business models have a
cellular servicing is extended to any available wireless system.
given CAPEX cost c and an operational income which scales
roughly linearly over time with gradient a. The operational
income is composed of the revenues/savings from using the E. Shake-Up in Cellular Value Chain?
IoT technology, diminished by the OPEX costs (typically in
From above, it is obvious that the IoT could enable a
the order of 10% of the CAPEX cost per annum). Three
true transformation in the cellular ecosystem. While the per-
different models are investigated, i.e. i) the quickest rollout by
bit value of IoT is rather low, the value due to a holistic
deploying all IoT technologies at once; ii) the lowest CAPEX
orchestration and big data exploitation is enormous. Let’s
rollout by deploying the technology with the lowest c first and
briefly examine the possible shifts in the ecosystem for both
then deploy the second-lowest c the moment it can be paid by
operators and vendors.
the first technology due to making financial gains; and iii)
Operators will add an important value due to global or-
deploy in such an order that risk to investors is minimized by
chestration, relying on roaming and other agreements already
understanding the different growth estimation errors.
struck in the ecosystem. This saves a lot of operational hassle
and it difficult to reproduce by e.g. the Wifi community. Fur-
D. 3GPP’s Universal Control Capabilities? thermore, a lot of the IoT deployments will be critical which
requires e.g. application/content-hosting cloud technologies to
Let us assume there is a massive demand for IoT by 2020 be placed right at the edge, i.e. into the operators networks. In
and the rollouts are increasing exponentially. Three operational addition, net-neutrality regulations may apply less stringently
models are possible: to machines and − through SDN − operators have all the
1) The ”Bluetooth Model”, i.e. where the consumer and technical means to reserve special data pipes for IoT traffic
industry purchase the IoT equipment and handle con- and thus giving an operator-run IoT deployment a cutting-
nectivity themselves. As explained in Section II, the edge over other deployment approaches. For all this, operators
disadvantage is that many critical IoT applications will will be able to charge premium rates to an extent which other
probably not work well. communities are not able to do which is a fundamental shift
2) The ”Wifi Model”, i.e. local connectivity is provided and on how this market will run.
largely managed through an IoT operator which bills Vendors, on the other hand, will likely capitalize on the
the customer on a monthly basis. While the operational unique characteristics of industrial IoT deployments. Notably,
pain is taken out for the customer, the IoT operator is that market will be heavily B2B-driven and less B2C-driven.
not able to guarantee delivery of critical IoT data since The latter is well-understood by operators while the former
license-exempt spectrum is used. is much better understood by vendors. We will thus likely see
3) The ”Cellular Operator Model”, i.e. truly global connec- many B2B alliances struck between a vendor and an industrial
tivity is provided using a cellular IoT provider (which IoT B2B company. Understanding that IoT equipment is typ-
does not need to be the traditional operator). While ically deployed for many years, the vendors lock themselves
a few technical challenges still need to be solved, the into the IoT market which brings them into a strong market
advantage is obvious in that reliable and accountable position. Indeed, they will be able to procure the best operator
connectivity can be provided globally which is an im- offer and thus have operators compete for their IoT equipment
portant value add to both consumers and business relying
on IoT technologies. 2 http://www.neul.com/neul/
15

deployments. This is a fundamental shift in how the cellular vision of a truly global Internet of Things.
market operates.
Table I summarizes the main 5G KPIs [66], and highlights
F. IoT Data Privacy and Trust which of the available/emerging technologies are able to meet
them. Cellular technologies, and especially 3GPP LTE, are
Above business opportunities will not emerge if some fun-
among the most appealing technologies in the modern IoT
damental issues around IoT data privacy and trust are provided.
connectivity landscape. They offer wide coverage, relatively
Notably, new trust models are expected to emerge, raising new
low deployment costs, high level of security, access to dedi-
extended requirements for authentication between different
cated spectrum, and simplicity of management. With the MTC
actors, accountability and non-repudiation. In 5G scenarios,
optimized Rel-12/13 and the introduction of NB-IoT, LTE is
several different devices will be interconnected together, each
also both low cost (communication module cost sub 10 USD)
of them with its own security requirements. Thus, for a device
and low power (10 year life time).
to not represent a potential attack for the whole network, it will
The global coverage, along with solid Radio Resource
not be enough to be compliant to the standard it implements.
Management (RRM) algorithms, yields a robustness and relia-
On top of this, very-low cost devices will need to be protected
bility not offered by any competing technologies. The already
using lighter-solutions which do not impact too much on their
deployed infrastructure, which is in essence subsidized through
lifetime. Obviously the current trust model does not fulfill the
data/voice traffic, does not require the deployment of an
needs of the evolved business and technological 5G scenario.
additional IoT infrastructure, such as observed for Zigbee or
Therefore, it should be re-designed, identifying the crucial
LPWA. This, in turn, lowers the deployment barrier of entry
shortcoming, and proposing new suitable solutions [63].
and the running costs to the point that total cost of ownership
Together with faster and more efficient techniques for han-
(TCO) is one of the lowest when compared to competing
dling security procedures (especially needed for low-latency
solutions (despite the higher modem costs and data plans).
scenarios), the 5G security architecture will have to pay
One of the most interesting features of MTC is the ability
particular attention to protection of personal data [64]. The
to offer SLAs even for the most critical and demanding
increased privacy concern has already emerged in society and
industry applications. Such agreements can be honored since
been discussed by the European Commission, standardization
the spectrum is exclusively owned by the operators, in contrast
bodies, including 3GPP and IETF, and many other forums.
to the ISM band used by Zigbee/LP-Wifi/LPWAs. The result
Actually, since 2G, user privacy has been carefully considered.
is that Industrial IoT companies, such as Worldsensing 3 ,
But, till now the advantages offered by the International
can focus on attracting new customers rather than spending
Mobile Subscriber Identity (IMSI) protection have not ap-
resources on solving (and being liable for) connectivity . This
peared to outweigh the complexity of its implementation.
is a very important business proposition which may prove
Thus, solutions for location and identity privacy should be
decisive in the battle for market share.
improved, with respect to those currently used for 4G, trying
Despite the convincing advantages, some serious challenges
to minimize the overhead they introduce.
remain to make MTC an underlying connectivity backbone for
Recently, some important vulnerabilities have been dis-
the Internet of Things. These challenges are pertinent at device
closed in current 4G LTE systems [65]. They are based on the
and networking levels, and when it comes to a viable business
inevitable tradeoff between performance and security which
proposition.
any system must made. 5G puts together and integrates a
From a device point of view, the two largest issues to date
heterogeneous set of wireless access technologies, enabling
(2015) are energy consumption and modem cost. Regarding
seamless connectivity. This might result into an increase of
the energy consumption, given that transmission powers can-
the potential set of vulnerabilities. For data traversing several
not be reduced significantly if communication ranges are to be
different connectivity technologies, vulnerabilities on one of
maintained, the only solution is to facilitate MTC data trans-
them could be exploited to gain access and attack the whole
mission and reception in the shortest time possible. At device
system.
level, this requires a novel approach to device duty cycling
(i.e. the ability to put the MTC device in an ultra-low power
VII. C ONCLUSIONS state). Regarding modem cost, the performance requirements
5G technologies and the Internet of Things are among the of current MTC devices are unnecessarily high for many low
main elements which will shape the future of the Internet end IoT applications. Current 3GPP efforts thus concentrate on
in the coming years. In this paper, we have analyzed in reducing the performance requirements and complexity which
detail the potential of 3GPP-defined 5G technologies for will enable simplified device implementations and lowered
the IoT, by placing them in the context of the current cost.
connectivity landscape for IoT. Differently from previous From a network point of view, the biggest challenge pertains
cellular technologies which were designed essentially for in facilitating the data transfer from and to the devices as
broadband, the requirements which the future 5G networks quickly as possible. Currently, delays occur in radio bearer
will have to satisfy, and particularly those for MTC make 5G establishment and due to congestion in the wireless channel.
communications a particularly good fit for IoT applications. Therefore, entirely novel approaches in radio-bearer establish-
By offering lower cost, lower energy consumption and support
for very large number of devices, 5G is ready to enable the 3 http://www.worldsensing.com/
16

TABLE I
I OT K EY P ERFORMANCE I NDICATORS (KPI S ) COVERED BY MODERN CONNECTIVITY TECHNOLOGIES .

ZigBee BLE LP-Wifi LPWA 3GPP Rel8 LTE Rel13 & NB-IoT
Scalability 7 7 3 7 3 3
Reliability 7 3 3 7 3 3
Low Power 3 3 3 3 7 3
Low Latency 7 3 3 7 3 3
Large Coverage 7 7 3 3 3 3
Low module cost 3 3 3 3 7 3
Mobility support 7 7 7 7 3 3
Roaming support 7 7 7 7 3 3
SLA support 7 7 7 7 3 3

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